International Travel to the U.S.: Recovering, Recovered, or Growing?

International Travel to the U.S.: Recovering, Recovered, or Growing?
NOTES TO SPEAKER: None SLIDE NOTES: Presented by: julie heizer Office of Travel and Tourism Industries International Trade Administration U.S. Department of Commerce January 2011

Agenda for Today The State of the U.S. Travel Industry 2010
Global Forecast for World International Arrivals U.S. International Travel Trends Short & Long Term Forecast for Arrivals to U.S. U.S. Department of Commerce Engagement in Travel and Tourism Questions NOTES TO SPEAKER: None SLIDE NOTES:

USA travel industry recovery mixed…
The Bottom Line USA travel industry recovery mixed… Total output…recovering. Total employment…still declining. How do we look at today’s picture? The industry is recovering, recovered, or growing depending on your perspective and metric.

Our Current Economic Situation Summarized
The patient is stable and gradually strengthening However, it remains weakened from past trauma That weakness translates into uncertainty and vulnerability NOTES TO SPEAKER: None SLIDE NOTES: Since health care’s au courant at the moment, here’s another way to look at our current economic situation: The patient is stable and slowing gaining strength. However, it was definitely weakened by past trauma, which continues to translate to uncertainty and vulnerability. Source: Tourism Economics

The State of U.S. Travel and Tourism Industries: Domestic & International
The next several slides are based upon OTTI’s Travel & Tourism Satellite Accounts quarterly data. Accounts help the impact of travel on the United States economy. The next couple of slides will provide you with a quarterly overview of what the rates of change have been between the 3rd quarter of 2007 to the 3rd quarter of 2009 for: 1. total travel spending 2. Spending in retail sales related to travel & tourism 3. total travel related employment 4. Employment related to retail sales Note, if asked: The U.S. TTSAs are extensions of the U.S. Input-Output (I-O) Accounts produced by the U.S. Department of Commerce, Bureau of Economic Analysis. I-O accounts provide production and consumption data by item But, the I-O Accounts cannot tell us if the consumption or spending was by a local resident, traveler or international visitor. The TTSA uses the I-O Accounts information and additional data to develop an impact of just what travel is of the spending.

Recovery Stronger with Food Services and Shopping Sectors
Recession impacted tourism output unevenly. Transportation and lodging hit hard. Food service, shopping—”what recession?” Recovery uneven, too! Transportation and lodging recovering. Food service and shopping showing growth! Recreation and entertainment still recovering. All major tourism sectors reported on a quarterly basis by BEA’s Travel and Tourism Satellite Account, or TTSA, were growing in total output… up to and including the third quarter of 2008. The recession—starting in Q for many sectors impacted travel very unevenly. Transportation and lodging suffered the worst declines, while food service just kept GROWING! Shopping suffered a very small decline, while recreation and entertainment eked out a small increase. [NOTE: no output data for “all other industries”] Through QII 2010, all sectors are RECOVERing, except for recreation and entertainment, which is NOW in recession. Food service GROWTH is increasing, and shopping has recovered and is growing.

Employment Has Not Come Back to Reflect Better Sales … Still Suffering
Recession impacted tourism employment across SOME sectors. Shopping (retail) and all other industries hit hard. Air services, food service, recreation—”what recession?” No recovery in jobs! Employment levels lower across all travel sectors! “Employment recession” for all. The story is VERY different for employment, which peaked in 2007 for the travel industry overall, but peaked EVEN EARLIER for many of the individual sectors. The red columns show declines in 2009 versus the employment high of 2007 or 2008. ALL sectors have suffered employment losses, especially air transportation, whose employment has been declining since 2000! EVEN WORSE, the declines continue! The blue columns show the declines on an annualized basis for QII 2010 versus the 2007 or 2008 high employment levels. But again, the food service and recreation and entertainment sectors have been impacted the least.

The Bottom Line USA travel industry recovery mixed… Total output…recovering. Total employment…still declining. Global travel arrivals and spending fully recovered due to global economic recoveries…led by Asia and South America. The industry is recovering, recovered, or growing depending on your perspective and metric. Here we see that global travel arrivals and spending have fully recovered …

World Tourism Arrivals & Receipts (1980-2010)
SLIDE NOTES: Let’s begin with the numbers looking at global travel arrivals were 880 million and receipts were $852 billion. Thus, global spending per visitor is roughly $1,000 per trip. There’s no real shift here….world tourism arrivals and receipts have grown at a consistent rate since 1950 of about 7%...with only a few slow-down periods, such as the early ‘80s and the early ‘00s. The graph here shows annual changes from 1950 up through 2010. The UNWTO forecast for arrivals is a plus 5% or 6% in 2010, and growth in the 5-6% range through 2020. We use the terms “arrivals” and receipts to reflect the occurrence of some travelers visiting multiple countries on the same trip. So for example, arrivals is the sum of visits to countries at the destination level, as opposed to the number of TRAVELERS at the origin country level. 2009 880m $852b Source: U.N. World Tourism Organization [GRAPHIC SOURCE: I:\Tourism Industries\Outreach\Associations\WTO--UN World Tourism Organization\001 UNWTO U.S. Market Share Indicators (of Global Travel by country)\1950-CURRENT World Arrivals, $$$, US share.xls 9

Global Travel Trends (from UNWTO)
Global arrivals: 2010YTD up 7% over 2009YTD; higher than 2008 levels Forecast 2010 up 5%-6% -- a new record 2011 arrivals +4% : 5%-6% average annual growth rate Global receipts growing at similar pace: +5%-6% Emerging countries leading the way Here are the most recent trends reported by the United Nations World Tourism Organization in Madrid. As you can see, growth in 2010 year-to-date over 2009, and overall higher than 2008 levels. And the forecast looking ahead is for modest growth in arrivals through 2020, including a similarly paced uptick for receipts. And here’s where their information comes from…

U.S. Leads World in Market Share for Travel & Tourism Exports (2009)
Rank Destination Country World Share 1 United States 11.0% 2 Spain 6.2% 3 France 5.8% 4 Italy 4.7% 5 China 6 Germany 4.1% 7 United Kingdom 3.5% 8 Australia 3.0% 9 Turkey 2.5% World Travel Export Market Share Shifting U.S. share of world travel exports in declined from 17.4% in because of large new aggressive market entrants (China & Australia) and new small emerging markets like Turkey, Thailand & Malaysia. As has long been the case, the U.S. dominates in share of world receipts, and is ranked second for international traveler volume. UNWTO excludes passenger fares in the reporting of receipt totals. If the U.S. airline industry were a county, it would be the 8th largest in receipts from foreign travelers (foreign residents using U.S. carriers). We believe all of the “mature” markets are going to have to watch the emerging markets very carefully, as well as to recognize that they will undoubtedly have an effect on world market share. You can already see their impact in the 5-9 positions here on 2009 market share. Source: U.N. World Tourism Organization

The Bottom Line USA travel industry recovery mixed… Total output…recovering. Total employment…still declining. Global travel arrivals and spending fully recovered due to global economic recoveries…led by Asia and South America. International arrivals…fully recovered! The industry is recovering, recovered, or growing depending on your perspective and metric.

U.S. Travel Exports, Imports & Trade Balance (1996-2009)
U.S. travel exports (receipts) has exceeded travel imports (payments) since 1989. $billions This slide shows the trends for exports, imports, and the difference—trade balance, specifically as they relate to the U.S. market. Fortunately, exports have exceeded imports providing us with a positive trade balance since 1989. And, as you can see, we were trending up again following 2001, until we hit last year’s economic challenges. However, we’re still “in the black” with the 2009 trade balance being just at $20 billion. Few U.S. industries can claim a positive trade balance, which produces a NET increase to US GDP. This positive trade balance for our industry is a very good thing. Exports Imports Trade Balance Sources: Department of Commerce, Office of Travel & Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico

12 of Top 15 Origin Markets Showed Declines in 2009
Let’s look at performance by the top origin markets in 2009 since that’s the last year for which we’ve got the full year’s data: 2009 Highlights: * Record for 30 of 183 countries tracked. These 30 account for only 2 million visitors. Moreover, Australia and China are more than half of this total. * 2 of top 10, and 5 of top 20 posted an increase * Record for 1 of top 10; 3 of top 20. Sources: Department of Commerce, Office of Travel & Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico 14

Solid Increases Seen in 13 of Top 15 Origin Markets Through October 2010
Here’s how we’re looking so far for 2010 for those same markets! So far, a MUCH brighter picture almost across the board– don’t forget that this is still “year to date” as our final figures for 2010 aren’t yet available. We’ve got one tiny stubborn “primary” market still hovering right around the “even” line in the United Kingdom. And, we’ve got one big “hold-out,” down here at the bottom of the slide …so for those of you in the room who sell to Venezuela … What are you doing ????? Get out there and SELL SELL SELL to your Venezuelan clients! We need to bump them up to the green side of the street! Sources: Department of Commerce, Office of Travel & Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico 15

Export Value Rank Varies from Visitation Rank: Japan, Brazil, China, India
Total Travel Ranking Receipts Visitors Receipts Origin Country ($bil) 1 1 Canada $16.13 4 2 Japan $13.05 3 3 United Kingdom $11.43 2 4 Mexico $8.05 5 5 Germany $5.57 7 6 Brazil $4.57 6 7 France $4.12 14 8 China $3.60 12 9 India $3.57 10 10 Australia $3.42 U.S. TOTAL $120.34 We saw earlier how the countries ranked in terms of arrivals to the U.S. Here’s a look at their economic importance to the U.S. These top-10 countries account for 61% of total spending. Canada attained the top spot in 2007. Japan was in the top spot prior to 2007, was pushed down to 3rd by UK growth only to move up to 2nd due to UK’s steep decline in 2009 spending. Brazil moved up to 6th place due to continued growth coupled with declines for countries that had been ranked higher. China moved up from 11th to 7th in 2009 because of flatness in spending coupled with declines for other countries. Conversely, Italy was pushed to 11th place because of a large drop in 2009 spending. 2008 was the record year for most markets. The exceptions are Japan, whose record remains 1995, and Brazil, the only top 10 country setting a record in 2009. In our shop, we like to focus on receipts because we believe this is the more salient number. This was underscored by one of our previous under secretaries (Lavin) who said: “I can’t spend visitors or trade surplus, but I can spend travel receipts, which creates taxes and jobs.”

What’s in the Future For Us?
OTTI’s country-level Travel Forecast methodology has recently changed. Since 1995 we had subscribed to Global Insight’s Travel Forecast Model. Global Insight was previously Wharton Econometrics, WEFA…and now IHS Global Insight. For several reasons including OTTI budget cuts, we brought the process in-house. One of our crackerjack economists manages this herculean task. Well, okay … he really just consults his Mattel Magic-8 Ball … but don’t tell him I gave him up! Interestingly, his forecast is currently tracking as the singularly most accurate of the forecasts out there; so he MUST’VE done something right!

The Bottom Line USA travel industry recovery mixed… Total output…recovering. Total employment…still declining. Global travel arrivals and spending fully recovered due to global economic recoveries..led by Asia and South America. International arrivals…fully recovered! Forecast is bullish: 51% grand total expansion by 2015; Similar across Canada, Mexico and overseas; Led by China (+346%), Brazil (+198%), South Korea (+171%), India (+123%). The industry is recovering, recovered, or growing depending on your perspective and metric. The forecast is strong with a tremendous 51% growth between 2010 and 2015! Most of the mature markets – Canada, Mexico, Overseas (primarily Europe) will have similar “slow but steady” progress. However, where we see the huge upticks will be, not surprisingly, in emerging markets – China, Brazil, South Korea and India.

International Visitors to the U.S. and Projections (2001-2015)
Arrivals in Millions Here’s how the U.S. arrivals trend will look if our forecasts come to fruition. In 2010, we’ll break the 2008 arrivals record, and grow at a 6% to 9% rate over the following five years. In terms of growth RATES, we assume that 2010 growth will be high and the following years of growth will be a bit lower, due to a retraction of the public sector spending in many countries. The forecast also assumes that the Travel Promotion Act, passed in March 2010, will have a positive and significant impact on arrivals toward the end of this 6-year period, which we have reflected in these numbers. Sources: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada October 2010 forecast

Short- and Long-Term Forecast: Growth from 55M in 2009 to 83M in 2015
Total international arrivals were down 5% in We expect a full recovery in 2010 to set a new international arrivals of more than 58 million. All regions are expected to return to a growth mode in 2010. Overseas includes all countries except Canada and Mexico. Sources: Office of Travel & Tourism Industries; Statistics Canada; Banco de Mexico - October 2010 forecast

Short-Term Forecast Inbound Travel to the U.S.
Visitor Actual Change Change Change Origin / f 10/ f 11/10 (000s) (%) (000s) (%) (000s) (%) Europe 11, % 11,658 1% 11,907 2% United Kingdom 3, % 3,743 -4% 3,781 1% Germany 1,687 -5% 1,721 2% 1,772 3% France 1,204 -3% 1,241 3% 1,265 2% Italy % 806 7% 830 3% Spain % 639 7% 651 2% Netherlands % 564 3% 576 2% Ireland % % % Switzerland 356 4% 377 6% 388 3% Sweden % % 378 5% Belgium % 258 5% 266 3% Denmark % 253 3% 263 4% Norway % % 225 3% Austria 163 2% 170 5% 175 2% Declines from Europe in 2009 were nearly universal. 2010 growth is also nearly universal, but at a low level for most countries. Only Ireland is expected to remain in a decline mode in 2010 and 2011. Source: OTTI - October 2010 forecast

Visitor Actual Change Change Change Origin / f 10/ f 11/10 (000s) (%) (000s) (%) (000s) (%) South America 2,742 7% 3,180 16% 3,507 10% Brazil % 1,205 35% 1,410 17% Venezuela 507 0% % 456 0% Colombia 425 1% % 509 7% Argentina % % % Ecuador % 184 9% 190 3% Peru % % 192 9% Costa Rica % 170 8% 181 6% Chile % % 159 9% The largest visitation countries in South America had visitor gains in 2009. All countries except Venezuela are expected to be in a growth mode in 2010. Who’s out here today selling to Venezuela??? Visitor volume growth rates for Brazil and Argentina are among the highest across all countries. Source: OTTI - October 2010 forecast

Visitor Actual Change Change Change Origin / f 10/ f 11/10 (000s) (%) (000s) (%) (000s) (%) Asia 5,669 -8% 6,738 19% 7,381 10% Japan 2, % 3,298 13% 3,430 4% Korea % 1,004 35% 1,185 18% India % % % China 525 6% % % Taiwan % % 295 7% Philippines % 180 5% 187 4% Oceania 872 2% 1,028 18% 1,139 11% Australia 724 5% % % New Zealand % % 156 5% Visitation from Asia-Pacific suffered a big decline in 2009. Exceptions were China and Australia where record levels were set. We expect high growth rates to return for many of the Asian countries. And who’s out here selling to these markets? I’m thinking maybe a bit of friendly regional competition is appropriate!! Source: OTTI - May 2010 forecast

Quick Focus on Four Key CHT Markets
OTTI produces forecasts based on performance across 10 factors for the top 30 countries, which account for 92% of visitation. For the remaining 180-ish countries, forecasts are based on GDP change. I thought I’d give you a bit more in-depth info for four of our top producers. More of this info is available in our full forecast.

Select Markets Overview: United Kingdom
Outbound to USA Recent Demos GDP Currency Jobs Markets TPA CS +— — — — —+ Total outbound has been flat since 2006 for our #3 origin market. A 15% decline to the USA in 2009 continued the downward trend since the record arrival of 4.7 million British travelers in 2000. Fortunately, the 6 year forecast calls for total growth of 21% still placing it lowest among the top 10 countries. However, growth could still equate to 1 million more travelers. OVERVIEW: Total outbound flat for the #3 origin market. 15% decline to USA in 2009 continued the downward trend since 2000 record of 4.7M. 6-year forecast calls for total growth of 21% from , lowest among top 10 countries. Still, growth could equal nearly 1M more travelers! POSITIVES: Population growing slowly. GDP annual growth improving from +1.7% in 2010 to +2.6% in FTSE 100 not fully recovered from 2007 but getting there. UK beneficiary of state and city travel offices. Exchange rate down from 2007 sweet year of $2.00, but same as a decade ago. NEGATIVES: Total outbound had consistent growth up to 2006, then flat for at least 3 years. Recent outbound to U.S. in decline…U.S. share of total outbound down. Declines continuing in Unemployment high but improving over five years.

Select Markets Overview: Japan
Outbound to USA Recent Demos GDP Currency Jobs Markets TPA CS — — —+ — — + + — — + + The six year forecast for our #4 origin market is strong, with 47% total growth expected from 2009, starting with a nice solid 2010 performance which we believe will be 13% higher than the previous year. Unfortunately, even with this projected rate of growth, Japan will still be shy of its record of 5.37 million visitors who traveled to the United States in 1997. There are many factors in play in Japan – a population aging and in decline; high unemployment; and multiple economic issues. Travel has been in decline from Japan to almost all of the long-haul destinations, not just the U.S. Hopefully, the Open Skies Agreement signed in November last year will add capacity, which should also help. OVERVIEW: #4 origin market showing a rebound of +13% in 2010, followed by moderate growth of 3%-5% for three years. Higher growth in expected. 6-year forecast calls for total growth of 47% from —much of it in the out years—but volume will remain below 1997 record of 5.37M. POSITIVES: Following long-term decline in monthly arrivals, robust growth 10 consecutive months through Sept. follows 17/20 monthly declines. Currency exchange rate on 4-year upward trend. Increase in air capacity, lower fuel surcharge. Air capacity recovered or recovering from losses. Open-skies agreement signed in November 2010. NEGATIVES: Total outbound in decline for years. Long-term decline to U.S., N.A. and W. Europe. Spending peak Population declining and aging. GDP moderate rebound in 2010, then 1%-2% annual growth. Unemployment stubbornly high. Stock market up and down after long-term massive decline. Huge public debt-to-GDP ratio. Geo-equity index of 7 lowest among top 10 visitor origin markets.

Select Markets Overview: Germany
Outbound to USA Recent Demos GDP Currency Jobs Markets TPA CS — —+ —+ — — — —+ —+ + — The German market pushes forward; with an expected 6 year growth of 35% overall. Many things are in play, including unemployment rates now starting to settle down after leading the pack in Europe; their stock market starting to improve and their strong geo-equity index (2nd of top 10 origin countries). OVERVIEW: #5 market up and down since 1996 record of 2.00M. 6-year forecast calls for total growth of 35% from POSITIVES: Unemployment relatively high compared to other countries, but improvement continues from 2005 level of nearly 11%. DAX market still down from 2007 high but improving. Likely beneficiary of TPA based on recent interest from U.S. state travel offices. Geo-equity index of 17 2nd highest among top 10 origin countries. NEGATIVES: Total outbound flat over last decade. Outbound to USA up and down. GDP growth declining from +3.3% in 2010 to +1.3% in IMF expects Euro to remain at current levels over next five years.

Select Markets Overview: Brazil
Outbound to USA Recent Demos GDP Currency Jobs Markets TPA CS — —+ + + ? This is Mark’s “smokin’ hot” country! A tripling in growth over the forecast period is called for in Brazil. The 2010 total arrivals, forecast to be 1.2 million will shatter the long-standing 1997 record of not quite a million travelers. According to Mr. Brown, this is one to watch! OVERVIEW: Smokin’ hot #7 visitor origin market firing on all cylinders. 6-year forecast calls for total growth of 198% (tripling) from volume of 1.2M will shatter long-standing 1997 record of 0.94M. Tough to forecast because USA share of total outbound fluctuates wildly…33% in 1995, 10% in 2004, 16% recently. POSITIVES: Just about everything! Strong GDP growth linked to commodity exports to Asia. Open-skies agreement negotiated and pending signature. NEGATIVES: Stubborn high unemployment rate of 7.5% still lower than mid-00s. IMF forecasts real to decline slightly from current $ Geo-equity index of 11 same as UK, but 80% to FL and NY.

The Bottom Line USA travel industry recovery mixed… Total output…recovering. Total employment…still declining. Global travel arrivals and spending fully recovered due to global economic recoveries..led by Asia and South America. International arrivals…fully recovered! Forecast is bullish: 51% grand total expansion by 2015; Similar across Canada, Mexico, and overseas; Led by China (+346%), Brazil (+198%), South Korea (+171%), India (+123%). Department of Commerce engagement So … just what in the heck is the Department of Commerce doing to help all of you and all of the industry?

Putting the Pieces Together
We’re putting the pieces together – with your help, of course! Let’s look at the big picture first …

DOC’s Engagement with Travel & Tourism
Gary F. Locke, Secretary, DOC DOC’s Engagement with Travel & Tourism The World Organisation for Economic Co-operation and Development (OECD) Asia-Pacific Economic Cooperation (APEC) Multilateral organizations’ tourism committees to advance policy agenda U.S. Government Tourism Policy Council (TPC) Interagency council to coordinate on tourism policy Office of Travel and Tourism Industries (OTTI)/ Office of Travel Promotion (OTP) DOC/ITA/MAS offices responsible for travel and tourism & liaison to CTP Industry Travel & Tourism Advisory Board (TTAB) Private sector advisory board to the Secretary Corporation for Travel Promotion (CTP) Private sector corporation board appointed by the Secretary to promote the USA Secretary Gary Locke (former governor of Washington State), leads the DOC charge for travel and tourism. We’re engaged at the global level; by chairing both the OECD and APEC tourism working groups. This provides us the opportunity to work hand-in-glove with most of the global economies on policy-based issues that are of great importance to the travel and tourism industry. On the “internal” level, DOC is engaged with all of the federal agencies that have some nexus to the industry through the Tourism Policy Council, which Secretary Locke leads. From the industry’s side, Secretary Locke has the Travel and Tourism Advisory Board providing him with advice and counsel as to important policy-based issues they believe critical to the industry’s success. And now, the Corporation for Travel Promotion begins to come into play.

Tourism Policy Council
Secretary of Commerce leads the Tourism Policy Council based on the National Tourism Organization Act of 1996 Purpose: Coordinate national policies and programs related to travel and tourism, recreation, and national heritage resources Objectives: -- Provide single point of contact for industry and agencies -- Synthesize travel and tourism data -- Ensure senior level commitment at the inter-agency level -- Provide conduit between USG and TTAB The Tourism Policy Council works to coordinate national policies and programs related to travel and tourism, recreation, and national heritage resources. When it’s all cooking right; the Travel and Tourism Advisory Board provides their private sector input to the Secretary, who then feeds it to the TPC. The TPC takes whatever action(s) they deem appropriate and provide feedback to the TTAB through the Secretary. In addition, the TPC has the opportunity to “originate” issues and seek input from the private sector using the Secretary’s TTAB as the conduit. A great communications cycle to get information into and out of both the USG and the private sector for mutual success and benefit. NYO-NY ST1

Agencies of the Tourism Policy Council
Department of Agriculture Department of Commerce (EDA/USFCS/NOAA/MBDA) Department of Homeland Security Department of Housing & Urban Development Department of Interior Department of Labor Department of State Department of Transportation Executive Office of the President Office of the Vice President Office of Management & Budget Small Business Administration U.S. Army Corps of Engineers Additionally Invited: President’s Committee on the Arts and the Humanities Environmental Protection Agency Department of Health and Human Services Advisory Council on Historic Preservation Here’s the line-up of agencies and offices involved in the TPC. The folks in the blue box were mandated by Congress. The folks in the green box are those that we’ve added since the TPC’s inception because it made great sense for them to be involved on an on-going basis.

Travel & Tourism Advisory Board
Who? Chartered in 2003 30 members in Appointed by the Secretary of Commerce Represent the diverse nature of the travel & tourism industry What? Advises the Secretary on policies and programs that affect the U.S. travel & tourism industry Offers counsel on current and emerging issues Provides a forum for discussing and proposing solutions to industry-related challenges The Travel and Tourism Advisory Board is the Secretary’s direct link to YOU -- the private sector travel and tourism industry. Their mandate is to advise the Secretary on policies and programs that affect our industry. In addition, the TTAB provides a forum for discussing and proposing solutions to industry-related challenges (think entry/exit programming, or appropriate response to the H1N1 virus/pandemics).

Travel & Tourism Advisory Board Members
Hubert Joly, Carlson John Klein, Premium Outlets David Kong, Best Western International Philip Levine Baron Corporation Gina Marie Lindsey, Los Angeles World Airports Chandrakant (C.K.) Patel, BVK Holdings, Inc., J. Stephen Perry, New Orleans CVB Adam Sacks, Tourism Economics Joseph Saunders, Visa, Inc. Douglas Shifflet, D.K. Shifflet & Associates, Ltd. Ronald Solimon, Indian Pueblo Cultural Center John Sprouls, Universal Parks & Resorts Greg Stubblefield, Enterprise Holdings Perry John P. Tenorio, Marianas Visitors Authority George Zimmerman, Michigan Economic Development Corporation Rossi Ralenkotter, Chair Las Vegas Convention & Visitors Authority Dawn Drew, Vice-Chair; The M.O.S.T.E., Inc. Holly Agra, Chicago’s First Lady Cruises Richard Anderson, Delta Air Lines, Inc. Jose Andres, Think Food Group Sheila Armstrong, U.S. Cultural & Heritage Tourism Marketing Council Helane Becker, Dahlman Rose & Company Nicholas Calderazzo, RMP Travel Todd Davidson, Travel Oregon Maryann Ferenc, Mise En Place, Inc. Chuck Floyd, Hyatt Hotels Corporation Sam Gilliland, Sabre Holdings Adam Goldstein, Royal Caribbean International David Hayes, M.D., Mayo Clinic Jeremy Jacobs, Delaware North Companies These are the 30 men and women, representing a tremendous geographic spread across the nation. In addition, they represent big business, small business and everything in between. They represent almost all of the sectors of the industry, from accommodations and air carriers, to retail outlets and destination marketing organizations. This TTAB is the most diverse of any of the Boards that have preceded it. Secretary Locke just named the final 3 members of the board – Helane Becker, Todd Davidson, and C.K. Chandrakant were appointed in late December to fulfill the current term, which concludes in September this year.

Travel Promotion Act Signed by President Obama March 4, 2010
Establishes an independent nonprofit Corporation for Travel Promotion: To promote the U.S. to world travelers To augment USG communications on entry/exit policies A momentous day in the Oval Office, to be sure. March 4, 2010 marked the signing of the Travel Promotion Act. As President Obama was leaving the Oval Office, he said to Secretary Locke – “Gary Locke, be sure you do this right!” Secretary Locke has been working very hard to ensure that the TPA and the CTP are rolled out appropriately, accurately and expeditiously. The Corporation for Travel Promotion’s key responsibility is to promote the United States to the world’s travelers and to augment USG communications on entry/exit policies

Corporation for Travel Promotion
Al Weiss President, Worldwide Operations, Walt Disney Parks and Resorts, Orlando, Florida Daniel Halpern, President and CEO, Jackmont Hospitality, Atlanta, Georgia David Lim Chief Marketing Officer, Amtrak, Washington, D.C. Roy Yamaguchi Owner and Founder, Roy’s Restaurant, California Lynda S. Zengerle Partner, Steptoe & Johnson LLP, Washington, D.C. Mark Schwab Senior Vice President-United Airlines, Chicago, Illinois Caroline Beteta President and CEO, California Travel & Tourism Commission, Sacramento, CA Stephen Cloobeck Chairman and CEO, Diamond Resorts International, Las Vegas, Nevada George Fertitta CEO, NYC & Company, New York, N.Y. Tom Klein President, Sabre Holdings, Southlake, Texas Diane Shober Tourism Director, State of Wyoming, Cheyenne, Wyo. These are the 11 private sector representatives appointed by Secretary Locke in September last year. Interestingly, they’re in alpha order – but the first three folks on the top row also happen to be the Vice Chair, Chair and Vice Chair! Their terms are staggered from one-to-three years, and they have already accomplished a great deal: Hired the High Lantern Group as their “office” support system while they’re in the process of identifying and hiring a paid executive and staff Hired the executive search firm Incorporated in Washington, DC, including filing their bylaws and articles of incorporation Established a monthly schedule of board meetings (open to the public) Launched their “B2B” website so anyone interested can keep up with what they’ve got going on

National Export Initiative
Goal: Double exports over the next 5 years Created Export Promotion Cabinet Focuses on three key areas: 1. Expanding trade advocacy 2. Improving access to credit for small and medium-sized businesses 3. Continuing enforcement of international trade laws As you likely know, President Obama launched his National Export Initiative in 2010, calling for the doubling of exports within the next 5 years. As you definitely know, international arrivals to the U.S. are considered exports, so travel and tourism is getting a “front row seat” to the Administration’s program of work. It’s up to ALL of us to work together to ensure that we’re doing all we can to help the President find success in this program, which, if successful, will also result in new jobs for Americans.

Supporting the President’s National Export Initiative
Target Markets and Sectors Country Commercial Guides ITA Global Teams MAS Industry Assessments CS Post Strategic Plans Projections from Economists TPCC Member Agencies Target Industry Sectors Healthcare / Medical Devices Infrastructure Defense Environmental / Energy Technology Industries Education Travel and Tourism Even though we all know that the world truly revolves around travel and tourism, I guess it wouldn’t be fair to not even mention in passing the other industries that are the focus of the NEI.

Travel & Tourism As a Leading Export (2009)
Travel & Tourism exports $120 billion Percentage of total exports % Percentage of service exports % Travel trade surplus $21 billion Employment from tourism exports million And here’s why travel and tourism is part of the NEI initiative: We are DOPE! We represent just about 2.5% of the nation’s GDP. We represent 8 percent of total exports, and nearly a quarter of services exports in the United States. As I mentioned way earlier in my presentation, the industry has been carrying a travel trade surplus for decades, and will likely continue to do so. And a million folks are employed in the United States specifically as a result of our international guests coming to visit. (Overall industry employment sits at just below 8 million … but only 1 million of those are directly attributable to the export side of the house.) NYO-NY ST1

Example of Reports Available from OTTI’s Website
OTTI’s website contains a plethora of information to help you market your business to international travelers. Shown here is a sampling of the kinds of reports our office produces… …information on the impact of travel on the U.S. economy the impact of INTERNATIONAL travel on the U.S. economy overview of international visitors to the U.S. profiles of visitors from our top 30 origin countries profiles of key travel industry sectors In addition, there’s tons of additional information not included in our prepared reports, if you’re interested in more in-depth (or different) information.

We are seeing travel and tourism industry sales GROW!
Summary We are seeing travel and tourism industry sales GROW! We need to continue to expand travel and tourism exports to eventually regain and GROW jobs. As I said … working along side you and others in the travel and tourism industry; we are putting the pieces together. We don’t believe you can do it alone. We know we can’t do it alone. Please keep us in your loops. Provide us with good, solid information. Let us know what’s happening out here in the real world. Let us know how we can be of assistance to your efforts. Let us know where there are opportunities to get the word out about the importance of this industry.

How to Find Us http://tinet.ita.doc.gov julie heizer
Office of Travel & Tourism Industries U.S. Department of Commerce Phone:

International Travel to the U.S.: Recovering, Recovered, or Growing?

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International Travel to the U.S.: Recovering, Recovered, or Growing?

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Presentation on theme: "International Travel to the U.S.: Recovering, Recovered, or Growing?"— Presentation transcript:

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